All financial figures are in Canadian dollars unless otherwise noted
CALGARY, March 6, 2012 /CNW/ - Gibson Energy Inc. ("Gibson" or the
"Company"), TSX: GEI, today reported record results for 2011 supported
by increases in segment profit1 across all operating segments.
Adjusted EBITDA in the three months ended December 31, 2011 increased by
19% to $67.3 million compared to $56.7 million in the three months
ended December 31, 2010. 2011 Adjusted EBITDA2 increased by 52% to $231.3 million compared to $152.6 million in 2010.
Pro Forma Adjusted EBITDA3 for the year ended December 31, 2011 was $237.0 million.
Cash provided by operations in the three months and year ended December
31, 2011 was $35.9 million and $207.3 million, respectively, compared
to $43.9 million and $132.4 million in the three months and year ended
December 31, 2010, respectively.
"I am very proud of our unprecedented 2011 financial and operating
results," said Stewart Hanlon, President and Chief Executive Officer.
"We are executing effectively on our growth plans while generating
stable and growing cash flow for our shareholders and providing
integrated midstream solutions for our customers."
For the three months ended December 31, 2011, segment profit increased
by 18% to $74.7 million compared to $63.1 million in 2010 and by 50% to
$256.7 million in the year ended December 31, 2011 from $171.6 million
in the year ended December 31, 2010.
All of Gibson's operating segments experienced volume increases in 2011.
An additional $143.0 million was spent in 2010 and 2011 on internal
growth projects to support the provision of midstream solutions to
Gibson customers doing business in key market areas. The addition of
rolling stock in Canada and the U.S., construction of four new
connections at the Hardisty and Edmonton Terminals and the purchase of
trucks, tanks and generators by the Company's retail propane business
helped to achieve these volume increases.
Increased crude oil prices and production levels have added to demand
for many facets of the midstream energy value chain in which Gibson
participates. This has allowed for hauling rates to be increased in
Truck Transportation and for increased sales of Distillate 822 drilling
mud within the Processing and Wellsite Fluids segment.
In 2011 the Marketing, Terminals and Pipelines and Processing and
Wellsite Fluids business segments benefitted from the widening of heavy
to light crude oil pricing differentials from historically low levels
experienced in the first nine months of 2010. Marketing and Custom
Terminals captured the benefit through the arbitrage opportunities
created, while the Processing and Wellsite Fluids segment experienced
reduced feedstock costs resulting in higher margins for their products.
"Gibson spent approximately $290 million on acquisitions over the course
of 2010 and 2011 and we are seeing the benefits of those expenditures,"
said Mr. Hanlon. "Terminals and Pipeline's segment profit has increased
due to the acquisitions of Battle River Terminal and Palko
Environmental, while the Truck Transportation segment's results
increased, in part, due to the full year impact of the Taylor
acquisition in the U.S."
Corporate Highlights for the Year Ended December 31, 2011:
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On June 15, 2011, the Company completed an initial public offering of
its common shares for gross proceeds of $500.0 million. Subsequently,
the Company completed two secondary offerings of common shares of the
Company held by R/C Guitar Cooperatief U.A. ("Co-op"), a Dutch
cooperative owned by investment funds affiliated with Riverstone
Holdings LLC, for total gross proceeds to Co-op of $581.6 million.
Following the secondary offerings, Co-op owns approximately 29% of the
common shares of the Company;
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Capital expenditures, in 2011, were $148.0 million of which $111.4
million related to internal growth projects. Internal growth project
expenditures are primarily related to the construction of tanks and
pipeline connections at the Company's terminals and the expansion of
the Truck Transportation and Canwest Propane fleets;
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The Company completed and commissioned the Enbridge Line 4 and Cold Lake
pipeline connections at the Company's Hardisty Terminal;
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The Company entered into a long-term service agreement with a major
customer providing the customer with the use of a storage tank at its
Hardisty Terminal. As a result, all four tanks acquired as part of the
Company's acquisition of Battle River Terminal ULC have been leased out
to customers on a long term basis with each agreement providing for
fixed monthly fees plus additional usage fees based on monthly volume
throughput;
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On August 11, 2011, the Company entered into a partnership agreement to
jointly construct and own a pipeline and an emulsion treating, water
disposal and oilfield waste management facility in the Plato,
Saskatchewan area;
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On December 8, 2011, the Company completed the acquisition of all of the
issued and outstanding shares of Palko not already owned by the Company
for consideration of approximately $51.8 million of which approximately
$5.8 million was paid as cash consideration with the remainder through
the issuance of 2.4 million common shares of the Company. This
investment, together with the development plans for the Company's
Rimbey custom terminal and the Plato facility described above, will
expand the Company's Canadian custom terminal operations to include
emulsion treating, water disposal and oilfield waste management
services; and
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The Company declared two series of dividends totaling $0.52 per common
share for total dividends of $49.6 million, of which $28.8 million was
settled with the issuance of common shares to shareholders
participating in the Company's dividend reinvestment plan with the
remainder being settled in cash.
MD&A, Financial Statements & Notes
The Management's Discussion and Analysis and the December 31, 2011
Consolidated Financial Statements provide a detailed explanation of
Gibson's operating results for the year ended December 31, 2011 as
compared to the year ended December 31, 2010. These documents are
available at www.gibsons.com and at www.sedar.com.
2011 Fourth Quarter and Year End Results Conference Call
A conference call to discuss Gibson's fourth quarter and year end
results will be held at 7:00 a.m. MT (9:00 a.m. ET) on Wednesday, March
7, 2011 for interested investors, analysts and media representatives.
The conference call dial-in numbers are:
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1 -866-696-5910 from Canada and the US;
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416-340-2217 from Toronto and International;
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Participant Pass Code: 5780411.
Shortly after the call, an audio archive will be posted on the Investor
Relations and Media section at http://www.gibsons.com.
The call will also be recorded for playback 60 minutes after the meeting
end time, until September 7, 2012, using the following dial in process:
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905-694-9451 / 800-408-3053;
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Pass code: 2662064.
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(1)
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Segment profit is defined as revenue minus (i) cost of sales; and (ii)
operating costs. It excludes depreciation, amortization, impairment
charges, stock based compensation and corporate expenses.
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(2)
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Adjusted EBITDA is defined as consolidated net income (loss) before
interest expense, income taxes, depreciation, amortization, other
non-cash expenses and charges deducted in determining consolidated net
income (loss), including movement in the unrealized gains and losses on
the Company's financial instruments, stock based compensation expense,
impairment of goodwill and intangible assets, and non-cash inventory
write-downs. It also takes into account the impact of foreign exchange
movements in the Company's U.S. dollar denominated long-term debt,
management fees, debt extinguishment costs and other adjustments that
are considered non-recurring in nature.
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(3)
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Pro Forma Adjusted EBITDA differs from Adjusted EBITDA in that it also
includes the pro forma effect of acquisitions that took place in each
fiscal year as if the acquisitions took place at the beginning of the
fiscal year in which such acquisitions occurred.
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Forward-Looking Statements
Certain statements contained in this news release constitute
forward-looking information and statements (collectively,
Forward-looking statements"). These statements relate to future events
or the Company's future performance. All statements other than
statements of historical fact are forward-looking statements. The use
of any of the words "anticipate", "plan", "contemplate", "continue",
"estimate", "expect", "intend", "propose", "might", "may", "will",
"shall", "project", "should", "could", "would", "believe", "predict",
"forecast", "pursue", "potential" and "capable" and similar expressions
are intended to identify forward-looking statements. These statements
involve known and unknown risks, uncertainties and other factors that
may cause actual results or events to differ materially from those
anticipated in such forward-looking statements. No assurance can be
given that these expectations will prove to be correct and such
forward-looking statements included in this news release should not be
unduly relied upon. These statements speak only as of the date of this
news release. In addition, this news release may contain
forward-looking statements and forward-looking information attributed
to third party industry sources. The Company does not undertake any
obligations to publicly update or revise any forward looking statements
except as required by securities law. Actual results could differ
materially from those anticipated in these forward-looking statements
as a result of numerous risks and uncertainties including, but not
limited to, the risks and uncertainties described in "Forward-Looking
Statements" and "Risk Factors" included in the Company's Supplemented
Prep Prospectus dated June 7, 2011 as filed on SEDAR at www.sedar.com and available on the Gibson website at www.gibsons.com.
This news release refers to certain financial measures that are not
determined in accordance with International Financial Reporting
Standards ("IFRS"). Adjusted EBITDA and Pro Forma Adjusted EBITDA are
not measures recognized under IFRS and do not have standardized
meanings prescribed by IFRS. Management considers these to be important
supplemental measures of the Company's performance and believes these
measures are frequently used by securities analysts, investors and
other interested parties in the evaluation of companies in its
industries with similar capital structures. See "Summary of Quarterly
Results" in the Company's MD&A for a reconciliation of EBITDA to net
income (loss), the IFRS measure most directly comparable to EBITDA, and
for a reconciliation of Adjusted EBITDA and Pro Forma Adjusted EBITDA
to EBITDA. Investors are encouraged to evaluate each adjustment and the
reasons the Company considers it appropriate for supplemental analysis.
Investors are cautioned, however, that these measures should not be
construed as an alternative to net income (loss) determined in
accordance with IFRS as an indication of the Company's performance.
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Fourth Quarter and Year End - Selected Financial Highlights
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Three months ended
December 31,
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Year ended December 31,
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2011
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2010
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2011
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2010
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(in thousands)
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Segment Profit:
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Terminals and Pipelines
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$22,309
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$14,409
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$72,081
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$40,842
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Truck Transportation
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19,655
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14,698
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68,613
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53,602
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Propane and NGL Marketing and Distribution
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14,532
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12,662
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40,385
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34,848
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Processing and Wellsite Fluids
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9,607
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10,185
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46,905
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34,143
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Marketing
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8,552
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11,143
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28,674
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8,132
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Total Segment Profit
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74,655
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63,097
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256,658
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171,567
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Statement of Cash Flows Data:
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Cash flows provided by (used in):
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Operating Activities
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$35,912
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$43,938
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$207,317
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$132,434
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Investing Activities
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(42,865)
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(11,236)
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(83,880)
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(281,200)
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Financing Activities
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(35,935)
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(50,919)
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(66,853)
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128,907
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Other Financial Data:
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Capital Expenditures:
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Internal Growth Projects
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$34,018
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$11,364
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$111,352
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$31,642
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Upgrade and Replacement Capital
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7,702
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9,590
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36,686
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32,630
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Acquisitions
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51,788
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51,788
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236,525
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Adjusted EBITDA
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$67,345
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$56,688
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$231,283
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$152,570
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Pro Forma Adjusted EBITDA
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$237,022
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$162,359
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